Here Come The Middle Class Tax Hikes

While the President touts his $7 per week tax cut for "95% of Americans," it looks like many states are ready and willing to take any savings right out of the taxpayer's' pocket.

Numerous states are considering raising taxes to fill budget gaps, and it's not just on the rich.   According to the article, 10 states are now looking at some form of tax hike.

From today's Wall Street Journal: "Delaware Gov. Jack Markell wants to raise the marginal income-tax rate by one percentage point, to 6.95%, on those earning more than $60,000 a year, effective in 2010. His budget plan also includes increases in corporate taxes as well as spending cuts to close a projected $750 million shortfall in a $3 billion budget, said spokesman Joe Rogalsky."

States are facing huge budget gaps as they overspent during the boom years and now look for revenue where they can get it.   And it appears that just taxing the rich won't be enough.

From the WSJ's story:  "States have lowered revenue forecasts repeatedly in recent months, yet the estimates still seem to exceed the grim reality. Last week, Pennsylvania officials said total March tax collections were $334.6 million, or 7.9%, short of expectations, due to sharp drops in income and sales taxes and a steep decline in corporate income taxes. For the fiscal year that began July 1, 2008, collections to date are running $1.6 billion less than forecast."

As the Journal story notes, states budgets are tight.   So tight that it is likely not just the "rich" who have the taxman dip into their pocket.

10 states now.   More to come for sure.